The effect of international financial reporting standards (IFRS) adoption on the value relevance of financial reporting: A case of russia

2013 ◽  
pp. 27-60 ◽  
Author(s):  
Tatiana A. Garanina ◽  
Polina S. Kormiltseva
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

The Value Relevance and Predictability of IFRS Accounting Information: The Case of GCC Stock Markets

2014 ◽  
Vol 1 (1) ◽  
pp. 215 ◽  
Author(s):  
Abdelmohsen M. Desoky ◽  
Gehan A. Mousa
Keyword(s):  
Financial Reporting ◽  
Stock Markets ◽  
Value Relevance ◽  
Accounting Information ◽  
Listed Companies ◽  
Securities Market ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

This paper investigates some earning attributes (as the value relevance and predictability) of accounting information provided under International Financial Reporting Standards (IFRS ) in the Bahrain Bourse (BHB) and the Muscat Securities Market (MSM). The sample used in this research consists of 280 year-firm observations from 40 different companies listed in BHB; and a total 203 year-firm observations from 29 companies listed in MSM covering the period 2005-11. The findings of the study suggest that, for BHB, the adoption of IFRS leads to improvement in the value relevance of financial reporting contradictory predictability attribute as predictability of accounting information in listed companies of BHB is reduced after the adaption of IFRS. In MSM, the adoption of IFRS captures approximately similar value relevance of accounting information before adoption IFRS, however, predictability of accounting information improves after the adaption of IFRS. It was clear that the IFRS adoption by companies in MSM enhances the predictability of accounting information more than in BHB.

scholarly journals The Impact of International Financial Reporting Standards (IFRS) Adoption on The Accounting Quality of Listed Companies In Kenya

2011 ◽  
Vol 1 (1) ◽  
pp. 212 ◽  
Author(s):  
Erick Rading Outa
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Value Relevance ◽  
Listed Companies ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Accounting Quality ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Timely Loss Recognition

AbstractThis study seeks to establish if the adoption of International Financial Reporting Standards (IFRS) in Kenya has been associated with higher accounting quality for listed companies. The International Accounting Standards Board (IASB), in its objectives and preamble, supposes that the beneficial effects from IFRS adoption include transparency, accounting quality and reduced cost of capital. Based on these assumptions, this study applied accounting quality measures; earnings management, timely loss recognition and value relevance to find out whether the adoption of IFRS has led to improvements in accounting quality in companies listed in Kenya. The methodology is based on prior literature definition of metrics of accounting quality mainly earnings management, timely loss recognition and value relevance. The study differs from the previous ones by overcoming difficulties in controlling for confounding factors faced in previous studies which could have led to less reliable results. Three out of the eight metrics indicated that quality had marginally improved while five indicated that it had marginally declined. These mixed outcomes are very much in line with findings in other studies and the study contributes to the debate by explaining why accounting quality outcomes are still not consistent with IFRS promises in spite of improved test conditions. Key words: IFRS; IAS; accounting quality; earnings management; timely loss recognition;

scholarly journals STUDI PUSTAKA RELEVANSI NILAI INFORMASI AKUNTANSI SEBELUM DAN SESUDAH PENERAPAN INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

2015 ◽  
Vol 4 (4) ◽  
Author(s):  
Baiq Reinelda Tri Yunarni
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Academic Research ◽  
Accounting Information ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Library Research

This study is a reviewof the academic research on value relevance of accountinginformationafter the application of International Financial Reporting Standards (IFRS)published in The Accounting Review in period of 2008-2012. The articles in those journalhave been selected in order to be relevantwith the purpose of this study, that is to determinethe changes (increases or decreases) the value relevanceof IFRS-based accountinginformation. This study uses library research method by collecting and reviewing 27articlesto be discussed qualitatively.Overall results of the review indicate that the adoption of IFRS has not been able toincrease the value relevance of accounting information. Application of IFRS can onlyincrease the international comparability of financial statements. The review also shows thatIFRS have not been able to reduce the level of company’s earnings management.Keywords : value relevance of accounting information, IFRS adoption, The Accounting Review

The Need for Global Adoption of International Financial Reporting Standards

2017 ◽  
pp. 1-10
Author(s):  
Marianne Ojo
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Accounting Information ◽  
International Financial Reporting Standards ◽  
Successful Implementation ◽  
Reporting Standards ◽  
Value Judgment ◽  
Financial Reporting Standards ◽  
Inaccurate Information ◽  
Market Crashes

Many questions have been raised as to whether financial accounting has become more conservative. The value relevance and qualitative characteristics of accounting information have become topics of particular relevance given the role they have assumed in influencing the value judgment of investors in deciding whether or not to invest in a certain market. Given the quality of accounting information – which has resulted in misleading and inaccurate information, it became evident, particularly following Enron's collapse, to adopt improved, enhanced, better quality standards: namely, International Financial Reporting Standards. This chapter considers the background culminating in the adoption of IFRS – as well as the need for the adoption of IFRS. It also highlights why the value relevance of accounting information is also of vital significance in certain emerging economies and why the successful implementation of IFRS in these jurisdictions may be crucial in restoring investor confidence – particularly in the aftermath of stock market crashes in these economies.

The readability impact of international financial reporting standards

2015 ◽  
Vol 27 (3) ◽  
pp. 282-303 ◽  
Author(s):  
Glenn Richards ◽  
Chris van Staden
Keyword(s):  
Computational Linguistics ◽  
Financial Reporting ◽  
Annual Report ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Financial Disclosures ◽  
Negative Impacts

Purpose – This paper aims to compare the readability of narrative annual report disclosure pre- and post-International Financial Reporting Standards (IFRS) adoption using a computational linguistics programme to determine if annual report disclosures have become more difficult or easier to read following the adoption of IFRS. Design/methodology/approach – This paper empirically measures narrative annual report disclosure readability pre- and post-IFRS adoption using a computational linguistics programme. In this analysis, the authors control for variables that have been identified as relevant to the understanding of financial disclosures, such as size, business volatility, financial leverage and industry. Findings – Significant relationships have been identified between IFRS adoption and reduced readability indicators using readability formulas, and also using other factors such as increased length of annual report disclosures and increased use of tables. Findings suggest that the adoption of IFRS has added complexity and resulted in reduced readability of annual report disclosures. Practical implications – Academic backing to claims of IFRS’s negative implications for financial statements and their ultimate users should encourage action on the part of standard setters and report preparers to address the negative impacts of IFRS adoption. Originality/value – This paper is the first to provide evidence that New Zealand equivalents to IFRS adoption have resulted in not only longer disclosures but also more complicated disclosures.

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